India and China continue to pursue energy cooperation despite ongoing political tensions and trade restrictions between the two nations. The relationship between the neighbors has often been strained, particularly since the 2020 border clashes prompted India to tighten foreign direct investment screening for Chinese companies. However, recent developments suggest a pragmatic partnership in energy sectors, driven by mutual strategic interests amid volatile global markets.

Since 2003, India’s oil and gas firm ONGC Videsh and China National Petroleum Corporation (CNPC) have jointly operated in Africa’s Greater Nile region through the Greater Nile Petroleum Operating Company (GNPOC). Despite challenges such as South Sudan’s independence in 2011, resulting pipeline disputes, and recurrent civil conflicts in the area, the joint venture has managed to maintain production and exports. The crude oil is transported through Port Sudan on the Red Sea, enabling both India and China to reduce reliance on traditional West Asian supply routes, which are vulnerable due to regional instability and geopolitical pressures.

This collaboration has particular significance as both countries navigate complex energy import landscapes shaped by U.S. sanctions and tariffs. India, for instance, refrained from importing Iranian oil between 2019 and early 2024 due to American sanctions and has faced a 25% tariff on Russian oil imports since 2025, even though Russia remains a major supplier. Recent U.S. decisions not to extend waivers for Russian and Iranian crude imports further complicate India’s energy security. Meanwhile, China’s financial infrastructure has so far allowed it to manage purchases from these sanctioned sources with limited repercussions.

The ongoing involvement of India and China in African energy projects demonstrates a practical approach that prioritizes resource diversification and supply chain resilience. Beyond South Sudan, both nations hold stakes in substantial liquefied natural gas developments in Mozambique, where ONGC Videsh and CNPC operate adjacent offshore blocks in the LNG project expected to begin production next year. Additionally, Chinese companies have invested heavily in oil and gas ventures in Congo-Brazzaville, potentially creating opportunities for broader Sino-Indian cooperation.

While broader commercial exchanges between the two countries remain constrained by mutual suspicion and policy barriers—evidenced by limits on manufacturing investments and technology transfers—the energy sector reflects a shared strategic imperative that transcends political friction. Experts note that this type of pragmatic collaboration does not rely on improved diplomatic relations but rather on aligned economic interests in securing stable energy supplies amidst a shifting global order.

With India and China continuing to face pressure to diversify away from Middle Eastern energy sources, their joint ventures in Africa appear poised to form a foundational element of future cooperation. These efforts highlight how persistent on-the-ground partnerships can endure despite broader geopolitical uncertainties, sustaining energy flows even in regions affected by conflict and instability.